Bitcoin Taker Buy/Sell Ratio Approaching Bullish Cross


On-chain data shows that the Bitcoin taker’s buy/sell ratio is now approaching a crossover with the “1” level, a sign that could be bullish for the crypto’s price.

Bitcoin Taker Buy/Sell Ratio Sees Rise, Nearing 1

As explained by an analyst in a CryptoQuant afterThere may be signs pointing to a local summit for crypto coming soon.

The “taker buy/sell ratio” is an indicator that measures the relationship between Bitcoin’s long volume and short volume.

When the value of the metric is greater than one, it means that the taker’s buying volume is higher than the selling volume at the moment. This trend indicates that there is currently a bullish sentiment in the market.

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On the other hand, a ratio below one implies that majority sentiment is currently bearish as the taker’s selling volume is greater than the long volume.

Here is a chart showing the trend in the Bitcoin buyer’s buy/sell ratio over the past few months:

The value of the indicator seems to have seen an increase recently | Source: CryptoQuant

As you can see in the chart above, the Bitcoin taker’s buy/sell ratio has been rising for the past month and is now approaching a crossover with the “1” level.

In the past, a rise in the value of the indicator above this line has usually been a bullish signal for the price of the crypto.

Related literature | Long Liquidations Continue to Rock the Market as Bitcoin Struggles to Move Above $30,000

The quant also indicates that the volume has increased and is about to exceed a positive value. The chart below shows this trend.

It seems that BTC volume has risen in recent weeks | Source: CryptoQuant

The analyst believes that these two trends combined (if they continue and the respective crosses occur) could indicate that Bitcoin’s price could soon rise and form a local top.

BTC price

At the time of writing, Bitcoin’s price is hovering around $30.3k, up 2% over the past seven days. Over the past month, the cryptocurrency has fallen 24% in value.

The chart below shows the trend in the price of the coin over the past five days.

The price of the crypto seems to have risen in recent days | Source: BTCUSD on TradingView

Bitcoin seems to have gained some foothold above the $30k level in the past two days, but the coin has still been stuck in an overall trend of consolidation for a few weeks now.

At this point, it is unclear when the coin will be able to escape this range-bound market and show some real price movement.

Featured image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com

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